The Chinese China Road and Bridge Corporation (CRBC) estimated last year that the cost overrun of the contract for the construction of the priority section of the Bar-Boljara highway will amount to more than 144 million euros.
This brings the total construction costs of the Smokovac-Mateševo section closer to one billion euros.
"In accordance with IAS 11 (international accounting standards) and with the new situation on the project, according to which it is likely that due to additional works and other circumstances, the total costs based on the contract will exceed the total amount of the contracted income, the amount of cost overruns of 144.294.076,91 .2017 euros", it is stated in the official documents submitted by the CRBC to the Montenegrin Tax Administration with the balance sheets for XNUMX. This means that the Montenegrin Government is aware of the fact that the cost overrun will be significant.
CRBC's documents do not mention whether the Smokovac interchange is included in the estimated exceedance. As "Vijesti" previously published, an independent engineer confirmed that the construction of the first phase of the Smokovac loop - the access road to the highway from Podgorica, the water and electricity networks on the entire section of the highway were not specified in the contract between the Ministry of Transport and the main contractor CRBC as an obligation of the contractor, but that are "forgotten".
In the agreement on the financial arrangement for the implementation of the construction project of the priority section of the Bar-Boljare highway, between the Government of Montenegro and Exim Bank from China, the price of the design and construction of the priority section of the Bar-Boljare highway was agreed, i.e. Smokovac-Uvač-Mateševo shares in the amount of around 809,6 million euros. For the realization of this project, Exim Bank is expected to provide 85 percent, and Montenegro the remaining 15 percent. The loan repayment term is 20 years, the grace period is six years, and the annual interest rate is two percent. The loan from Exim Bank was approved in dollars.
The Minister of Transport and Maritime Affairs, Osman Nurković, said recently that unforeseen allocations for the highway can be up to ten percent, or up to 80 million euros. However, they are now, according to Chinese estimates, almost 20 percent.
When asked how the final price of 809.577.256 euros was arrived at in the contract on the design and construction of the section, if it was not precise what it all included, the interlocutor of "Vijesti" said that it was the maximum amount offered by CRBC, and that the Montenegrin side thought it was for everyone.
The government will offer the Chinese company CRBC to build the "forgotten" access road for the section of the Smokovac - Mateševo highway, the missing electricity and water supply network for 60 million, as estimated by the expert team of the Ministry of Transport and the independent project engineer, which is twice less than what now looking for a Chinese partner.
If the Government and CRBC come to an agreement and find a figure acceptable to both parties, they will sign an annex to the construction contract where these, essentially basic works, will be called "subsequent works". It is possible that in that case the money will be provided by an annex to the loan agreement with the Chinese Exim Bank. If the agreement is not reached, the ministry will look for new contractors and creditors, all of which will increase the public debt in the period when the Government announced its reduction.
Former Deputy Prime Minister Žarko Rakčević said on Thursday on Načisto TV Vijesti that the highway section will cost about 28 million euros per kilometer and that the amount of interest that would bring the cost of the highway to about 150 billion and XNUMX million euros is often not mentioned in the public. "We will stay on a section of the highway," Rakčević said.
He assessed that partnerships for the second and third sections can be dangerous for public finances, which, he added, are "in a real problem".
"With the Smokovac interchange, we will have enormous expropriation costs of several million euros," said MP Aleksandar Damjanović in the show.
"Vijesti" announced in September of last year that CRBC refused to build the connection to the highway - the first phase of the Smokovac loop because it was not provided for in the contract signed by the former Minister of Transport Ivan Brajović (current President of the Assembly), and that it could cost extra 30 million euros to the state. Expropriation has not yet been completed for the interchange, so its construction as well as the completion of other "unforeseen" works will delay the opening of the highway until the end of 2019.
The connection to the highway from the direction of Podgorica, the first phase of the Smokovac loop, envisages a four-lane road that continues to the boulevard on Zlatica, rises ten meters and turns left above the former FK Kom stadium. The road then crosses the railway as an overpass and turns right towards Morača, where a large plateau with toll ramps will be built, and then a large bridge over Morača. This section is only about one and a half kilometers long, but almost all of it consists of overpasses and bridges, which makes it very expensive. The second phase of the Smokovac interchange envisages two connections for the continuation of the highway that will go around Podgorica, as well as the possible connection of the Adriatic-Ionian road, but this will probably be done in the second and third phases.Only 1,3 million for Montenegrin workers
From the total amount of wages paid (EUR 68.375.068 gross), EUR 57.090.366 refers to wages paid to Chinese workers in China, while EUR 10.509.443 refers to wages paid to Chinese and other foreign nationals in Montenegro, according to the CRBC report -a. The remaining 1.347.995 euros refers to the wages of domestic workers employed by the company. 612.000 euros pertains to administration costs.
Of the total amount of other personal expenses, 2.553.832 euros refers to food for workers in canteens, 2.400.436 euros to the costs of transportation of employees, mainly on the China-Montenegro route, 820.411 euros to payments to natural persons based on leases (mainly land), and the remaining amount of 293.141 euros refers to compensation to natural persons under fee contracts, accommodation and other personal compensation of employees. On 31.12. In 2017, the company had 2.159 employees, of which 1.886 were Chinese nationals.
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